14th November 2016 - Trends - October - November, 2016
October saw a steep slowdown in terms of volume of queries be it in the office segment or residential segment. Towards the end of the month, we received interest from prospective buyers for Crest, DLF's premium end development in DLF 5. Also came a couple of rental demand queries from prospective tenants - for high end bungalows in Delhi down to a small requirement for an apartment in Laburnum in Gurgaon.
On the office leasing front, the diwali period slowed down decision making from prospective tenants with the trend demand being for furnished office space and business centre space.
The feedback from the market is that residential rental market is active in an otherwise dull market with premium end segment and budget end segments seeing traction. We also received interest from prospective tenants for the Magnolias, an on-going micromarket as far as residential rentals go in Gurgaon.
Developers continue to try to attract customers by highlighting USP features of developments whilst making available convenient payment plan options.
Interesting to watch how prospective buyers and property holders or potential sellers share differences in views over the long term effects of currency clean-up in the country on real estate. We will be monitoring the situation closely over the next couple of quarters to better understand dynamics although we're optimistic on the whole.
One aspect I missed out in my last post on the possible effects, is that money supply base will rise in the economy, thereby lowering interest rates. This bodes well for output or gdp as well as cheaper funds for prospective home buyers as well as institutions.
November likely to remain stagnant as far as transactional activity is concerned, expecting things to improve in December, with a wider spectrum of interest..
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